Analyst Colin Langan of Wells Fargo has lowered Tesla's stock price target from $135 to $130, maintaining a Sell rating due to decreasing delivery estimates and strong competition in the EV market, particularly from China. He notes that Tesla's price cuts are yielding diminishing benefits, with Q1 2025 delivery estimates now lowered. However, Langan sees potential for recovery in Q2 with the anticipated launch of the Model Y Juniper and a more affordable model expected to increase deliveries.
Langan commented that the electric vehicle (EV) competition in China is intense. Meanwhile, in the United States, Langan expects the federal purchase tax credit worth up to $7,500 to end.
Despite his bleak outlook for Tesla in the first quarter, Langan sees some light in the company's near future. He predicted that Tesla deliveries would rebound to 450,000 vehicles in the second quarter, thanks to the 2025 Model Y Juniper.
Post-Trump/Elon duo highs, investors are starting to agree that there is no fun in the fundamentals. Investors are realizing that higher stock prices aren’t translating to improved car sales.
The Wells Fargo analyst also predicts that Tesla might launch its "affordable Model 2.5," which could boost deliveries, especially with plans for a cheaper Tesla Model Y variant.
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